ISLAMABAD: President Dr Arif Alvi has upheld decision of Federal Tax Ombudsman (FTO) directing FBR to dispose of refund application of private food company after providing it with opportunity of hearing as per law in matter where company had filed refund claims after delay of 5 to 8 years.

President gave this decision while rejecting FBR’s representation against decision of FTO in case where private food company had requested Large Taxpayers Office (LTO), Karachi in 2020 for condonation in delay under Sales Tax Act, 1990 for filing refund claims relating to period of 2012 to 2016 as Sales Tax amount of Rs 88.5 million was not claimed/adjusted in their previous Sales Tax returns due to some technical issues at company.

President in his decision pointed out that as per Supreme Court’s judgment (PLD 1998 SC 64), genuine refund could not be refused, even if refund applications were filed late, President Secretariat Press Wing said in press release.

President referred to Supreme Court’s decision (PLD 1998 SC 64) in Pfizer Laboratories Ltd. versus Federation of Pakistan case that held that if one party under mistake, whether of fact or law, paid some money to another party (which included a Government department) which was not due by law or contract or otherwise, that must be repaid in view of Section 72 of Contract Act, 1872.

He reiterated that as per Indo-Pak laws fact that amount of tax of which refund was claimed was voluntarily paid, did not preclude right to claim refund if it was not lawfully payable. He pointed out that commissioners of two different zones in company’s matters of identical nature Zakariya Traders, Unilever Distributers and Unilever Pakistan Foods Ltd had passed orders contrary to each other i.e., in former case, delay was condoned whereas in latter it was rejected.

Published in The Daily National Courier, April, 17 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.